Panel Begins Talks on New Growth Strategy for Financial Sector

Tokyo, Jan. 15 (Jiji Press)–A Japanese government panel began talks on Thursday to draw up a new growth strategy for the financial sector by this summer. “We hope to develop a financial strategy by the summer to unleash the potential of the Japanese economy and improve people’s lives,” Finance Minister Satsuki Katayama said at the first meeting on the day of a subcommittee of the Japanese growth strategy council. Katayama, who chairs the subcommittee, indicated that the panel will consider measures to boost corporate earning power through corporate governance reform and to expand the supply of funds for growth, such as revitalizing the corporate bond market. This year, the Financial Services Agency will also revise the corporate governance code for the first time in five years. It plans to urge listed companies to assess whether they are allocating funds appropriately for investment in facilities, research and development, and human capital, without excessively raising cash and deposits. The FSA also plans to relax rules on large credit extensions by banks, in an effort to promote large-scale mergers and acquisitions. END [Copyright The Jiji Press, Ltd.]